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जिनको रिवर्स चार्ज मैकेनिज्म में जीएसटी भरना है उनको जीएसटी नंबर लेना पड़ेगा जैसे कि हॉस्पिटल या वे व्यक्ति जो 20 लाख या उससे कम भी टर्नओवर करते हैं आदि
If you are required to pay GST-RCM under section 9(3) or section 9 (4), you are required to register for GST and also to file all returns mandatorily. Whether or not u deals in exempted goods or supply or having turnover less than 20 Lacs. For example hospital is exempted but if required to pay RCM then has to get registration.
1.Definition under Section 2(98) of CGST Act, 2017
“Reverse Charge” means the liability to pay tax by the recipient of the supply of goods or services or both instead of the supplier of such goods or services or both instead of the supplier of such goods or services or both under sub section (3) or sub section (4) of section 9 .
2.Section 9(3) of CGST Act, 2017 The Government may on the recommendations of the Council, by notification, specify categories of supply of goods or services or both , the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. “
3. Reverse charge under GST on 12 services on which tax shall be paid by the recipient on 100% reverse charge basis:
A.Non-resident service provider,
B. Goods Transport Agencies
C. Legal service by an Advocate/ Firm of Advocates,
D. Arbitral Tribunal
E. Sponsorship Services
F. Specified Services provided by Government or Local Authority to Business entity
G. Services of a director to a company
H. Insurance agent, Recovery Agent of Bank/FI/ NBFC
I. Transportation Services on Import
J. Permitting use of Copyright
K. Radio Taxi services to E-commerce aggregator (eg: Ola, Uber, etc.)
4. Section 9(4) of CGST Act, 2017 GST in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.
5. Exemption to section 9(4) of CGST:- As per section 11(1) of the CGST Act, if the Government is satisfied that it is in interest of the public to exempt some goods or services or both, either fully or partly of the tax leviable thereon.
6. Government issued a notification No. 8/2017- Central Tax (Rate) which shall be in force from July 1, 2017. As per the notification, exemption shall be applicable where the aggregate value of such supplies of goods or service or both received by a registered person from any or all the suppliers, who is or are not registered, is upto five thousand rupees in a day
7. Exemption upto Rs. 5000 is on intra state taxable supply
8. In case of supply more than Rs. 5,000/- per day, whole of such supply shall be taxable under reverse charge 9(4)
9. Limit is in respect of aggregate of all suppliers.
- G.S.R. (E).-In exercise of the powers conferred by sub-section (2) of section 23 of the Central Goods and Services Tax Act. 2017 (12 of 2017). The Central Government hereby specifies the persons who are only engaged in making supplies of taxable goods or services or both, the total tax on which is liable to be paid on reverse charge basis by the recipient of such goods or services or
both under sub-section (3) of section 9 of the said Act as the category of persons exempted from obtaining registration under the aforesaid Act.
- Time of supply for goods under reverse charge shall be the earliest of the following dates—
(a) the date of receipt of goods OR
(b) the date of payment OR
(c) the date immediately after THIRTY days from the date of issue of invoice by the supplier (60 days for services)
If it is not possible to determine the time of supply under (a), (b) or (c), the time of supply shall be the date of entry in the books of account of the recipient.For clause (b)- the date of payment shall be earlier of-
1. The date on which the recipient entered the payment in his books
2. The date on which the payment is debited from his bank account
a. Date of receipt of goods 7nd Aug 2017
b. Date of payment 5th Nov 2017
C. Date of invoice 4th July 2017
d. Date of entry in books of receiver 5th Nov 2017
Time of supply of goods is earliest or 30 days of date of invoice and that is 3rd Aug, 2017
If for some reason time of supply could not be determined supply under (1), (2) or (3) then it would be 5th Nov 2017 i.e., date of entry
In the above example if is the case of supply of services then it will be the Date of receipt of goods 7nd Aug 2017 as 60 days of invoice is 3rd Sept 2017.
12. When supplier is located outside India and it is the case of ‘associated enterprises’, where the supplier of service is located outside India, the time of supply shall be-
the date of entry in the books of account of the receiver OR
the date of payment
-whichever is earlier
13. Time of Supply under reverse charge must be included in the return for respective period.
- Input tax credit on reverse charge
Tax paid on reverse charge basis will be available for input tax credit if such goods and/or services are used, or will be used, for business.
15. The supplier must mention in his tax invoice whether the tax is payable on reverse charge
16. GST Compensation Cess will also be applicable on reverse charge including imports and reverse charge supplies.